chapter 4

Question 1

Social responsibility

Answer 1

company’s obligation to increase positive and decrease negative impacts on society

Question 2

Marketing citizenship

Answer 2

strategic focus for meeting and understanding economic, legal, ethical, and philanthropic social responsibilities (expected by stakeholders)

Question 3

Stakeholder orientation

Answer 3

The focus is on stakeholders; do what they do for them

Question 4

Social responsibility pyramid (bottom to top)

Answer 4

1. Economic (profitable)
2. Legal (obey law)
3. Ethical (just/fair)
4. Philanthropic (give back)

Question 5

Marketing ethics

Answer 5

principles that define acceptable marketing conduct (determined by stakeholders)

Question 6

Promoting goodwill: Cause-related marketing

Answer 6

practice of linking products to a social cause (to increase profit for company /awareness for cause)
*coca-cola and world wildlife fund (saving polar bears)

Question 7

Promoting goodwill: Strategic philanthropy

Answer 7

charitable giving to address stakeholders interests and achieve organizational/social benefits

Question 8

Social responsibility concerns (3)

Answer 8

1. Sustainability
2. Consumerism
3. Community relations

Question 9

Social responsibility concern: Sustainability

Answer 9

How business contributes to good quality of life/healthful environment
ex. Labeling products as green

Question 10

Social responsibility issue: Consumerism

Answer 10

Protecting consumer rights
(safety, information, choice, and feedback)

Question 11

Social responsibility issue: Community relations

Answer 11

Marketers’ contribution to community well-being
ex. addressing issues, employment opportunities, economic development, donating towards community causes

Question 12

Ethical issue

Answer 12

Identifiable problem/opportunity requiring a choice that must be evaluated as right or wrong (ethical or unethical)

Question 13

Product-related ethical issues

Answer 13

• Not communicating risk of product
• Withholding information

Question 14

Promotion-related ethical issues

Answer 14

• False or manipulative advertising (greenwashing)
• Bribery

Question 15

Pricing-related ethical issues

Answer 15

• Price fixing
• Price gouging
• Bait and switch

Question 16

Distribution-related ethical issues

Answer 16

• Counterfeiting
• Manipulating product availability
• Channel stuffing

Question 17

Factors that influence ethical decision making

Answer 17

1. Individual factors
2. Opportunity
3. Organizational relationships

Question 18

What is the code of conduct for marketing?

Answer 18

Code of Ethics of the American Marketing Association

Question 19

What are the ethical norms in the code of ethics? (3)

Answer 19

1. Do not harm.
2. Foster trust in marketing system
3. Embrace ethical values

Question 20

What are the ethical values in the code of ethics?

Answer 20

1. Honesty
2. Responsibility
3. Fairness
4. Respect
5. Transparency
6. Citizenship (fulfill the ELPS responsibilities)

Question 21

Difference between ethics and social responsibility

Answer 21

Ethics relates to individual/group decisions (right and wrong), while social responsibility deals with total effect of marketing decisions on society

Question 22

Code of conduct (ethics)

Answer 22

rules and standards that describe what the company expects of its employees